The world of decentralized finance has opened new paradigms of financial freedom and economic prosperity for traders and investors all across the world.
Within a few years of its existence, the DeFi sector has emerged to become a parallel financial ecosystem that continues to keep the world hooked with the plethora of countless opportunities it offers to traders.
For instance, some investors use their skills to create educational content for beginners, providing advice on how to successfully navigate the markets. Others might engage in copy trading, or a more advanced form of this on a platform such as Mosaic Alpha, creating token baskets – essentially customized investing strategies that others can follow.
DeFi provides smart investors with multiple ways to monetize their expertise to maximize their trading gains. In this article, we will explain the ways you can become a seasoned trader in the DeFi sector.
Share Your Expertise
If you happen to be a good trader, consistently making profits, there’s a huge demand for your knowledge. The internet is choc-a-block with blog posts, videos and tutorials on how to trade DeFi successfully, and there’s a relentless appetite for more.
Traders can share their knowledge through platforms like YouTube and Instagram, deriving a share of the ad revenues generated by their content.
By carving out a reputation for yourself as a DeFi expert, you’ll open the door to other opportunities, such as consultancy roles, speaking engagements and product endorsements, which can all provide a reliable stream of income.
Manage Token Baskets
Not everyone has what it takes to gain followers and become a DeFi influencer, but the great thing about token baskets is that anyone can create one as a way to profit from their trading expertise.
Token baskets are somewhat similar to ETF products in traditional finance, and they allow DeFi investors to create custom investment strategies that others can follow, for a fee. One of the most reputable platforms for this is Mosaic Alpha, that allows anyone to create and manage a token basket. It involves choosing a selection of digital assets that you think are destined for greatness, in order to diversify your investment portfolio. Other users can then pay to access your token basket and replicate your investment strategy, providing you with a passive income stream.
Adopt Data Driven Approach
The decentralized protocol employs a fairly complex rewards mechanism that ensures traders are incentivized to deliver a consistent profit, and it provides various analytics tools for users to review the performance of their baskets and optimize them on the fly. By following this data-driven approach, investors can continuously refine their investment strategy to improve its profitability, and increase the flow of rewards into their wallets.
Start Copy Trading
Copy Trading is an ideal option for day traders as it allows investors to charge a small fee of perhaps 1% or 2% for sharing their expertise as they strive to capitalize on the market movements each day.
There are numerous decentralized copy trading platforms for users to share their expertise. One of the most popular is Logearn.com, which provides tools to share trading strategies and track their performance.
Play The Staking Game
Some traders might struggle under the pressure that comes from knowing that numerous other individuals are relying on them to deliver consistent profits. As such, they might be interested in a more relaxed method of generating a passive income, and few are easier than the staking game.
The rewards are not always that profitable. For instance, Ethereum staking only pays out an APY of around 3% annually, but the advent of restaking gives investors a way to multiply those rewards. When you stake ETH on a platform such as Ether.Fi, you’ll receive a token called stETH that acts as a kind of “receipt” of your staked tokens. Bear in mind that liquid restaking is still a fairly new, and certainly not time-tested concept, which means that it might not be entirely risk-free.
Conclusion
By creating influencer content, managing token baskets, engaging in copy trading and partaking in staking, it’s possible to earn significantly more rewards than you’ll get from DeFi trading alone. Therefore, it is always lucrative to stay updated in the DeFi sector and level up your skills.
